Theory of the Consumption Function (eBook)

Milton Friedman (Autor)

eBook Download: PDF

2018
296 Seiten
Princeton University Press (Verlag)
978-0-691-18848-5 (ISBN)

Infos

What is the exact nature of the consumption function? Can this term be defined so that it will be consistent with empirical evidence and a valid instrument in the hands of future economic researchers and policy makers? In this volume a distinguished American economist presents a new theory of the consumption function, tests it against extensive statistical J material and suggests some of its significant implications. Central to the new theory is its sharp distinction between two concepts of income, measured income, or that which is recorded for a particular period, and permanent income, a longer-period concept in terms of which consumers decide how much to spend and how much to save. Milton Friedman suggests that the total amount spent on consumption is on the average the same fraction of permanent income, regardless of the size of permanent income. The magnitude of the fraction depends on variables such as interest rate, degree of uncertainty relating to occupation, ratio of wealth to income, family size, and so on. The hypothesis is shown to be consistent with budget studies and time series data, and some of its far-reaching implications are explored in the final chapter.

Autor

Milton Friedman (1912-2006) was awarded the Nobel Prize in Economics in 1976. He was a Senior Research Fellow at the Hoover Institution and had previously taught at the University of Chicago from 1946 to 1976. He was also a member of the research staff of the National Bureau of Economic Research from 1937 to 1981.

Produkt-Details

• Erscheint lt. Verlag: 5.6.2018
• Verlagsort: Princeton
• Sprache: englisch
• Themenwelt: Wirtschaft ► Allgemeines / Lexika
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Finanzwissenschaft
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Makroökonomie
• Schlagworte: Absolute income hypothesis • Aggregate data • Aggregate income • Analysis of Variance • Autonomous Expenditure • Bond Yield • Budget • Bureau of Labor Statistics • business income • Calculation • Capital Accumulation • capital expenditure • Capital Gain • Capital Gains Tax • Capital Market • coefficient • coefficient of variation • Commodity • Comparative statics • Conditional probability distribution • Consumer behaviour • Consumer goods • Consumption function • Correlation and dependence • correlation coefficient • Cost basis • Cost of living • Cross-Sectional Data • Customer Lifetime Value • Demand curve • developed country • Developing Country • Disposable and discretionary income • Distribution Yield • Econometrics • Economic Development • economic forecasting • Economic Inequality • economic problem • Economics • estimation • expected value • Extrapolation • family income • Financial Intermediary • Foreign Direct Investment • Function problem • gross income • gross national product • Imputed income • income • income distribution • Income in the United States • Indifference curve • Inflation • Joint probability distribution • Keynesian Economics • Lifestyle (sociology) • Marginal propensity to consume • Market Economy • Measures of national income and output • Method of averaging • Multivariate normal distribution • National Bureau of Economic Research • Net income • Net Worth • Nominal interest rate • Ownership (psychology) • Pearson product-moment correlation coefficient • Percentage Change • permanent income hypothesis • Pooling (resource management) • Present Value • price • Price index • Probability Distribution • Quantity theory of money • Rate of return • rationing • Real Income • Real versus nominal value (economics) • receipt • Relative income hypothesis • Relative value (economics) • Rental Value • Sampling (Statistics) • saving • Scale In • standard deviation • substitution effect • Survey of Consumer Finances • Tax • Tax Rate • Unit of observation • use value • Utility • Utilization • Value and Capital • Weighted arithmetic mean • Weight function
• ISBN-10: 0-691-18848-3 / 0691188483
• ISBN-13: 978-0-691-18848-5 / 9780691188485